Consumer, Industry, IPO

PE-backed Chinese Menswear Retailer GXG Files For $300M HK IPO

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Ningbo-based Alpha Smart Limited, the parent company of Chinese menswear fashion retailer GXG, has filed for an initial public offering in Hong Kong Exchange to raise a still undisclosed amount.

The IPO size and company valuation were not disclosed in its filling with the exchange. In March, a Bloomberg report suggested that the company was looking to raise about $300 million through the offering.

The company will use the proceeds for pursuing brand acquisitions or strategic alliances, upgrade its offline retail stores and establish advance smart logistics center, the company said in its filing.

Great World Glory, controlled by Singapore-based consumer-focused private equity firm L Catterton Asia, holds 73% stake in Alpha Smart as it bought majority shares in GXG in 2016. L Catterton Asia is backed by luxury giant LVMH Moet Hennessy Louis Vuitton SE.

The company’s fashion menswear product line accounts for approximately 3.23% market share, according to business consulting firm CIC.

Its revenue increased at a compound annual growth rate (CAGR) of 13.7% between 2015 to 2017, to reach RMB2.36 billion (US$345 million) last year. Similarly, the company’s adjusted net profit increased at a CAGR of 14.3% during the same period, to notch up RMB450 million (US$65.8 million) in 2017.

Founded in 2007, GXG, whose name stands for “Go-Getter Mix Glitterati”, has two core brand portfolios including the GXG series (GXG, gxg.jeans and and sportswear (Yatilas and 2XU).


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